Over time, these rental properties act like an insurance policy over a bad deal, covering it once that deal stabilizes. It all adds up, and you start to see an increasing cash flow.

If you avoid over-leveraging, you're paying down the mortgage and any early debt. Thus, you benefit from amortization.

IIf the market continues to rise, you'll gain appreciation, which adds to your equity. Now you have that power, that asset.

But sometimes, you don't even need equity. All you need is the cash flow, tax benefits, and depreciation working in your favor.